Question: Emily works at a nearby electronics store. She makes a commission of 12% on everything she sells. If she sells a computer for $845.00, how much money does Emily make in commission?
A commission rate is a percentage of the retail price of an item that the seller makes if he or she can sell the item. To find the amount of commission made, use the following formula: commission rate $\times$ retail price $=$ amount of commission made Since the commission rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $12\%$ is equivalent to $\frac{12}{100}$ which is also equal to $12 \div 100$ $12 \div 100 = 0.12$ Now you have all the information you need to use the formula above! $0.12$ $\times$ $$845.00$ $=$ $$101.40$ The amount of commission Emily makes by selling a computer is $$101.40$.